FINA5529: Topics in Finance I: Financial Modelling 2023
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FINA5529:
Topics in Finance I: Financial Modelling
2023
Individual Assignment
You and your teammates have now completed the valuation for Qantas. During the valuation process, you have had various disagreements with your teammates regarding how the valuation should be conducted and how to validate the assumptions utilised in the valuation. As such, you have decided to use other valuation techniques to conduct additional analyses.
These additional analyses are your individual tasks. You can draw some numerical evidence from your group report. However, this updated note discusses your own analysis.
The update note is to be submitted on the LMS for the unit at 5pm, WST, by Monday 29th
May 2023. The link for submissions will be available 24 hours before the deadline.
The following documents are required in your submission:
- A Complete update note in Microsoft Word
- An Excel file including all your calculations. Please make sure that you label your Excel sheets clearly for the audience (e.g., “DDM Estimates”, “Market Comparables” etc etc).
Please make sure that your update note does not exceed 6 pages, excluding the Title Page, the Reference List, and the Appendices.
If anyone has any technical problems in submitting the assignment, please contact Ms. Isabela Banea atisabela.banea@uwa.edu.au.
The Task
You have now decided to use the following valuation techniques to conduct additional analyses for Qantas:
- The Dividend Discount Model; and
- Relative Valuation Using Market Comparables
Required:
Prepare an updated note using the recommended “road map” below. In your updated note, you are required to:
(i) Estimate Qantas’s share price using the DDM.
(ii) Estimate Qantas’s share price using the market comparables.
(iii) Compare the above estimates in your additional analyses with the estimated Qantas
share price using the DCF approach from your group’s report .
(iv) Discuss and provide evidence to support your view regarding ethical investing and
sustainability considerations regarding the environmental and climate changes concerns, if any; and
(v) Based on all the analyses you have done for Qantas valuation, will you invest on Qantas’s shares? Justify your decision.
When you prepare your updated note to the Board, please follow the following “Road Map”:
|
Section |
Mark Allocation |
|
Executive Summary |
2 |
|
Qantas value using DDM |
8 |
|
Qantas value using market comparables |
8 |
|
Comparison with estimates from DCF approach |
2 |
|
Ethical investing and Sustainability considerations |
8 |
|
Conclusion |
2 |
|
Total |
30 |
Finally, please do not forget to cite the source of any external information you use. Please make sure you use consistent referencing style (APA or Harvard)
2023-05-28